Amidst its failure to secure recognition as a virtual asset provider, Binance, the world’s largest cryptocurrency exchange, has ceased operations in the Netherlands. In an announcement on Thursday, Coinmerce, a rival crypto exchange, revealed that Binance has referred its Dutch customers to their platform. Coinmerce, a registered provider of crypto exchange and wallet services since 2020, has been endorsed by the central bank.
Coinmerce CEO, Jaap de Bruijn, emphasized the company’s commitment to ensuring a smooth transition for affected customers. He stated, “Our priority is to ensure an orderly transition,” highlighting that regulators would oversee the process of transferring digital assets from Binance to Coinmerce. Notably, the transfer will be free of charge, providing relief to Binance customers impacted by the cessation.
Binance’s exit from the Dutch market follows a previous penalty imposed on the exchange by the Dutch central bank, amounting to 3.3 million euros ($3.6 million). The fine was a consequence of Binance serving clients in the country without the required authorization. In response, Binance had announced last month that it would no longer accept new customers from the Netherlands, and existing clients would be unable to deposit, trade, or make purchases after July 17.
The recent raid on Binance’s flagship center in Europe, located in France, further compounded the challenges faced by the cryptocurrency exchange. The raid was conducted as part of an investigation into allegations of “aggravated money laundering.” In addition, Binance and its CEO Changpeng “CZ” Zhao have faced charges from U.S. regulators, who accuse the company of operating an unlicensed securities exchange.
Despite Binance’s withdrawal from the Dutch market, a spokesperson affirmed the exchange’s commitment to obtaining the necessary authorizations in the future. The spokesperson stated, “While we are leaving the Dutch market, Binance remains committed to obtaining the necessary authorizations to reintroduce its products and services to users residing in the Netherlands in the future.”
As Binance bids farewell to the Netherlands, Coinmerce stands as a reliable and regulated alternative for Dutch residents seeking cryptocurrency exchange and wallet services. With its registration and endorsement from the central bank, Coinmerce is poised to cater to the needs of Binance’s departing customers and maintain its commitment to providing secure and compliant crypto services.
